Employment law in 2025 and beyond

Predictions are always difficult in these uncertain times but we can be certain that the Employment Rights Bill 2024 will be watched closely by all interested parties as it progresses through Parliament.

While most of the changes in the Bill will not be implemented until late next year, 2025 is likely to be the year in which the shape and balance of our employment law is determined for the foreseeable future.

• The Government has promised to listen to the concerns of businesses as key measures are fleshed out by regulations. These include:-
• Making protection against unfair dismissal a day one right, combined with a statutory probationary period
• Introducing a complex new regime regulating the use of zero-hours workers; and
• Imposing tough new restrictions on the use of fire and re-hire to impose changes to employees’ terms and conditions.

While keeping an eye on these far-reaching changes, it is important not to lose sight of more modest, but still significant changes which took effect during 2024.

These include the new rules on holiday pay for part-year and irregular hours workers which are still being phased in. Perhaps the largest cohort of these workers, with holiday years based on the calendar year, became subject to these new rules from 1 January.

It is also worth mentioning the new duty to take reasonable steps to prevent sexual harassment in the workplace, which was introduced in October 2024, and will be strengthened when the Employment Rights Bill becomes law.

2024 had more than its fair share of important judicial rulings which have sharpened our understanding of employment law. Among last year’s highlights was an Employment Appeal Tribunal judgment which re-emphasised the wide scope of the duty to make adjustments for disabled workers, and a decision from the Supreme Court which signalled a more flexible approach to determining employment status.

• For more information about the developments discussed above, as well as other recent legislation and case law, please see the Mills & Reeve employment law review of 2024.